Correlation Between Franklin Adjustable and Oppenheimer Discovery
Can any of the company-specific risk be diversified away by investing in both Franklin Adjustable and Oppenheimer Discovery at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Franklin Adjustable and Oppenheimer Discovery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Adjustable Government and Oppenheimer Discovery Mid, you can compare the effects of market volatilities on Franklin Adjustable and Oppenheimer Discovery and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Franklin Adjustable with a short position of Oppenheimer Discovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Adjustable and Oppenheimer Discovery.
Diversification Opportunities for Franklin Adjustable and Oppenheimer Discovery
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Oppenheimer is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable Government and Oppenheimer Discovery Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Discovery Mid and Franklin Adjustable is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Franklin Adjustable Government are associated (or correlated) with Oppenheimer Discovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Discovery Mid has no effect on the direction of Franklin Adjustable i.e., Franklin Adjustable and Oppenheimer Discovery go up and down completely randomly.
Pair Corralation between Franklin Adjustable and Oppenheimer Discovery
Assuming the 90 days horizon Franklin Adjustable Government is not expected to generate positive returns. However, Franklin Adjustable Government is 19.77 times less risky than Oppenheimer Discovery. It waists most of its returns potential to compensate for thr risk taken. Oppenheimer Discovery is generating about 0.15 per unit of risk. If you would invest 2,806 in Oppenheimer Discovery Mid on November 3, 2024 and sell it today you would earn a total of 124.00 from holding Oppenheimer Discovery Mid or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Adjustable Government vs. Oppenheimer Discovery Mid
Performance |
| Timeline |
| Franklin Adjustable |
| Oppenheimer Discovery Mid |
Franklin Adjustable and Oppenheimer Discovery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Adjustable and Oppenheimer Discovery
The main advantage of trading using opposite Franklin Adjustable and Oppenheimer Discovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable position performs unexpectedly, Oppenheimer Discovery can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Oppenheimer Discovery will offset losses from the drop in Oppenheimer Discovery's long position.| Franklin Adjustable vs. Vanguard Growth And | Franklin Adjustable vs. Tfa Alphagen Growth | Franklin Adjustable vs. Growth Portfolio Class | Franklin Adjustable vs. Pace Large Growth |
| Oppenheimer Discovery vs. Eagle Mlp Strategy | Oppenheimer Discovery vs. Federated Emerging Market | Oppenheimer Discovery vs. Vy Jpmorgan Emerging | Oppenheimer Discovery vs. Dodge Cox Emerging |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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